Program Description:
Combination construction and permanent loan program for new construction or substantial rehabilitation of affordable and market rate apartment communities owned by Non-Profit entities.

Loan Amounts:
No Maximum/Minimum

Loan Terms/ Amortization:
Construction Loan – Up to 2 years
Permanent Loan – Up to 40 years (fully amortizing)

Prepayment:
Negotiable but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse:
Non-recourse for both construction and permanent loans.

Borrower:
All properties must be owned by a single-asset, Non-Profit entity.

Debt Service Coverage:
1.05

Loan-to-Development Cost Ratio:
100%

Subordinate Financing:
With FHA’s approval; soft subordinate financing paid out of available net project cash flow.

Assumability:
Assumable with permission of lender and HUD.

Income & Expenses:
Based on current market comparables (no trending).

Reserves:
Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods:
Available for both Conventional financing and as Credit Enhancement for Bond transactions.

Processing:
M.A.P. – Lender performs all underwriting and prepares/reviews applications for program requirements; FHA reviews for compliance and accuracy. FHA conducts pre-application meeting or project acceptability.

T.A.P. – Lender underwrites, prepares and submits application; FHA processes application through permanent loan closing, including preparation of all third party reports.

Interest Rate Set: Interest Rates are set upon acceptance of Commitment.

Conversion to Permanent Loan:
Only requirements are completion and cost certification. Not subject to re-underwriting.

Program Description:
Combination construction and permanent loan program for new construction and substantial rehabilitation of affordable and market rate apartment communities.

Loan Amounts:
No Maximum/Minimum

Loan Terms/Amortization:
Construction Loan – Up to 2 years
Permanent Loan – Up to 40 years (fully amortizing)

Prepayment: Negotiable, but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse: Non-recourse, for both construction and permanent loans.

Borrower: All properties must be owned by a single-asset entity.

Debt Service Coverage: 1.12

Loan-to-Development Cost Ratio:
90%

Subordinate Financing:
With FHA’s approval; soft subordinate financing paid out of available net project cash flow.

Assumability:
Assumable with permission of Lender and HUD.

Income & Expenses:
Based on current market comparables (no trending).

Reserves:
Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods:
Available for both Conventional financing and as Credit Enhancement for Bond transactions.

Processing:
M.A.P. – Lender performs all underwriting and prepares/reviews applications for program requirements; FHA reviews for compliance and accuracy.

T.A.P. – Lender underwrites, prepares and submits application; FHA processes application through permanent loan closing, including preparation of all third party reports.

Interest Rate:
Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Conversion to Permanent Loan:
Only requirements are completion and cost certification. Not subject to re-underwriting.

Program Description:
Fixed rate permanent refinancing for existing apartment communities with HUD insured mortgages. This is a streamline refinance program that does not allow equity take-out. Streamline benefits include no property inspection, no appraisal, no environmental, modified mortgage credit analysis, reduced application fee, and no FHA inspection fee.

Loan Amount:
No Maximum/Minimum

Loan Term/Amortization:
The remaining term of the existing HUD insured mortgage. An additional 12 years can be added if warranted and approved by the HUB Director.

Prepayment:
Negotiable, but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse:
Non-recourse.

Borrower:
All properties must be owned by a single-asset entity.

Determination of Maximum The lower of the following:
Loan Amount: (i) original insured mortgage amount: (ii) 1.12 debt service coverage; or (iii) The amount of the outstanding indebtedness plus financing, closing expenses, and any repairs.

Subordinate Financing:
With FHA’s approval; soft subordinate financing
paid out of available net project cash flow.

Occupancy:
No specific occupancy requirements prior to loan funding.

Assumability:
Assumable with permission of lender and HUD.

Reserves:
All tax, insurance, replacement reserve, and mortgage insurance premium escrows are required and must be transferred to
the new loan. A minimum 150% repair escrow, if repairs are to
be made.

Interest Rate:
Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Program Description:
Fixed rate permanent financing for the acquisition or refinancing of existing apartment communities with at least 3 years of operating history.

Loan Amount:
No Maximum/Minimum.

Loan Term/Amortization:
Up to 35 Years.

Prepayment:
Negotiable but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse:
Non-recourse.

Borrower:
All properties must be owned by a single-asset entity.

Determination of Maximum The lower of the following:
Loan Amount: (i) 85% of HUD appraised value; (ii) 1.17 debt service coverage; or (iii) Purchase – 85% of cost to acquire (including estimated repair costs, financing and closing expenses and initial deposit to replacement reserve); Refinance – The greater of (a) the amount of the outstanding indebtedness plus financing, closing expenses, and initial deposit to replacement reserve, or (b) 80% of value.

Subordinate Financing:
Allowed up to the lesser of:
(i) 7.5% of value; (ii) 50% of the cash requirements to close.

Occupancy:
No specific occupancy requirements prior to permanent loan funding.

Assumability:
Assumable with permission of lender and HUD.

Reserves:
Tax, insurance, replacement reserve, and mortgage insurance premium escrows are required. Repair escrow (150%) may be required, if repairs are not completed and approved by HUD prior to closing.

Interest Rate:
Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire term.

Program Description:
Combination construction and permanent loan program for new construction and substantial rehabilitation of nursing homes, homes for the aged and assisted living facilities.

Loan Amounts:
No Maximum/Minimum

Loan Terms/ Amortization:
Construction Loan – Up to 2 years
Permanent Loan – Up to 40 years (self - amortizing)

Prepayment:
Negotiable, but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse:
Non-recourse, for both construction and permanent loans.

Borrower:
All properties must be owned by a single-asset entity.

Debt Service Coverage:
1.12

Loan-to-Development Cost Ratio:
90%

Subordinate Financing:
With FHA’s approval; soft subordinate financing paid out of available net project cash flow.

Assumability:
Assumable with permission of Lender and HUD.

Income & Expenses:
Based on current market comparables (no trending).

Reserves:
Taxes, insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods:
Available for both Conventional financing and as Credit Enhancement for Bond transactions.

Processing:
T.A.P. – Lender underwrites, prepares and submits application; FHA processes application through permanent loan closing, including preparation of all third party reports.

Interest Rate:
Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Conversion to Permanent Loan:
Only requirements are completion and cost certification. Not subject to re-underwriting.

Program Description:
Fixed rate permanent financing for the acquisition or refinancing of existing skilled nursing facilities and assisted living facilities with at least 3 years of operating history.

Loan Amount:
No Maximum/Minimum.

Loan Term/Amortization:
Up to 35 Years.

Prepayment:
Negotiable but typically closed for 5 years, then 5%, 4%, 3%, etc.

Recourse:
Non-recourse.

Borrower:
All properties must be owned by a single-asset entity.

Determination of Maximum The lower of the following:
Loan Amount: (i) 85% of value including major movables; (ii) 1.17 debt service coverage; or (iii) Purchase – 85% of cost to acquire (including estimated repair costs, major movables, financing and closing expenses and initial deposit to replacement reserve); Refinance – The greater of (a) the amount of the outstanding indebtedness plus financing and closing expenses and initial deposit to replacement reserve, or (b) 80% of value.

Subordinate Financing: Allowed up to the lesser of:
(i) 7.5% of value; (ii) 50% of the cash requirement to close.

Occupancy:
No specific occupancy requirements prior to permanent loan funding.

Assumability:
Assumable with permission of lender and HUD.

Reserves:
Taxes, insurance, replacement reserve, and mortgage insurance premium escrows are required. Repair escrow (150%) may be required, if repairs are not completed and approved by HUD prior to closing.

Interest Rate:
Interest Rates are based on market and are set upon acceptance of Commitment and fixed for entire construction and permanent terms.

Borrower:
All properties must be owned by a single-asset entity.

Debt Service Coverage:
1.11

Loan-to-Development Cost Ratio:
90%

Subordinate Financing: With FHA’s approval; soft subordinate financing paid out of available net project cash flow.

Income:
Underwritten at current Section 8 rents.

Reserves: Property Tax (if applicable), insurance, replacement reserve and mortgage insurance premium escrows are required.

Financing Methods: Available for both Conventional financing and as Credit Enhancement for Bond transactions.

Interest Rate:
Interest Rates are set upon acceptance of Commitment.

Conversion to Permanent Loan:
Only requirements are completion and cost certification. Not subject to re-underwriting.

Construction Security:

Required Letters of Credit:

Working Capital (Released at Final Endorsement):
2.00%

Assurance of Completion (Released at Final Endorsement):
15-25% of construction contract

Operating Deficit (Released at Final Endorsement):
if Applicable

Permanent Security:
Latent Defect (Released 15 mos. after completion):
2.50% of construction contract

Permanent Loan Closing:
Project completion with cost certification and Certificates of Occupancy for all units.

HUD/FHA Application Fee:
$3/$1,000 of mortgage amount.

Loan Amounts: No Maximum/Minimum

Loan Terms: Up to 35 Years.

Amoritization: Up to 35 Years.

Prepayment:
Negotiable, but typically closed for 5 years, then 5%, 4%, 3%, etc.

Borrower:
All properties must be owned by a single-asset entity.

Determination of Maximum Loan Amount:

Subordinate Financing:
Allowed up to the lesser of: * 7.5% of value; * 50% of the cash requirements close.

Assumability: Fully Assumable subject to HUD and Lender approval

Income: Underwritten at current Section 8 rents.

HUD/FHA Application Fee: $3/$1,000 of mortgage amount.

Interest Rate: Interest Rates are set upon acceptance of Commitment.